Three Important Factors for Investing in Five9 Stock Despite a 49% Yearly Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
0mins
Should l Buy CRM?
Source: NASDAQ.COM
Stock Performance: Five9 (FIVN) shares have dropped 49.1% over the past year, underperforming the tech sector and facing challenges from a tough macroeconomic environment and business transitions, despite a projected revenue increase for 2025.
AI Demand and Growth: The company is poised to benefit from rising demand for AI-powered customer experience solutions, with significant growth in enterprise AI revenue and bookings, supported by strategic partnerships with ServiceNow, Salesforce, and Alphabet.
Valuation and Earnings Outlook: FIVN shares are currently attractively valued with a forward P/E ratio of 17.85, lower than industry averages, and earnings estimates for 2025 indicate a positive growth trajectory, suggesting a favorable entry point for investors.
Long-term Investment Potential: Despite recent underperformance, Five9's strengthening fundamentals, competitive advantages in AI integration, and improving profitability position it well for long-term growth, earning a Zacks Rank #2 (Buy) for potential investors.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 185.430
Low
223.00
Averages
326.40
High
405.00
Current: 185.430
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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